Analysis

Banks Feeling The Heat Over Fintech Partners’ Cyber Risks

Law360 (June 13, 2019, 1:58 PM EDT) -- Consumers’ shift to online banking has drawn the watchful eye of regulators and put pressure on financial institutions to make sure they’re not left exposed to data security problems by the vendors they rely on to develop apps and services.

Facing competition from services like Apple Pay and Venmo that provide faster and easier ways to spend and transfer money, traditional banks are increasingly turning to third-party technology companies to build apps and other innovative offerings. But those partnerships don’t come without risks, experts say.

"It used to be that we were advising financial institutions to just make sure that they...

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